Portfolio At One Islington Plaza 1 Devon Street, Liverpool, L3 8HA

Description

• Rare opportunity to acquire 15 leasehold interests within a well-established purpose-built student accommodation scheme • Units configured as two complete 6-bedroom cluster flats and three studio apartments • Net operating income of £43,000 for the 2024/2025 academic year, equating to approximately £2,867 per unit • Stable income forecast for the 2025/2026 academic year • Fully managed, hands-off investment operated by Cloud Student Homes Strong occupancy rate of approximately 95% across the scheme This opportunity constitutes a professionally operated pooled student investment structure, with returns deriving from the wider trading performance of the block rather than individual unit performance. We understand that gross income from the scheme is combined into a single income pool before operating costs, service charges, ground rent, and management fees are deducted. The resulting net operating income is distributed to individual unit owners via a pre-defined weighting ratio based on unit type and relative rental value. Through this structure, performance is linked to the whole scheme's success, mitigating exposure to single-unit vacancy risk. The scheme is fully managed by Cloud Student Homes, encompassing lettings, rent collection, maintenance, and tenant management, providing a hands-off passive investment opportunity. Tenancies are agreed on a 44–48 week basis, aligning with the academic year. The scheme does not offer short-term summer lets, allowing for planned annual maintenance and refurbishment.

Accommodation

scheme • Units configured as two complete 6-bedroom cluster flats and three studio apartments • Net operating income of £43,000 for the 2024/2025 academic year, equating to approximately £2,867 per unit • Stable income forecast for the 2025/2026 academic year • Fully managed, hands-off investment operated by Cloud Student Homes Strong occupancy rate of approximately 95% across the scheme This opportunity constitutes a professionally operated pooled student investment structure, with returns deriving from the wider trading performance of the block rather than individual unit performance. We understand that gross income from the scheme is combined into a single income pool before operating costs, service charges, ground rent, and management fees are deducted. The resulting net operating income is distributed to individual unit owners via a pre-defined weighting ratio based on unit type and relative rental value. Through this structure, performance is linked to the whole scheme's success, mitigating exposure to single-unit vacancy risk. The scheme is fully managed by Cloud Student Homes, encompassing lettings, rent collection, maintenance, and tenant management, providing a hands-off passive investment opportunity. Tenancies are agreed on a 44–48 week basis, aligning with the academic year. The scheme does not offer short-term summer lets, allowing for planned annual maintenance and refurbishment. ACCOMMODATION One Islington Plaza is a modern, purpose-built student accommodation scheme comprising 317 leasehold units, including a mix of studios and cluster flats. The subject property comprises 15 individual leasehold rooms, arranged as x2 self-contained cluster flats configured in 6-bedroom groupings and three self-contained studio flats. Each cluster benefits from shared kitchen and living facilities. The units are held on long leasehold interests for a term of 250 years from 11 October 2016. Completed in 2019, the building is of modern construction and is presented in good overall condition. The development provides a comprehensive range of on-site amenities, including a gym, cinema room, communal lounge, dedicated study areas, games room, secure cycle storage and an on-site management team. Individual units are fully furnished to a good standard, typically including a bed with under-bed storage, study desk and chair, wardrobe, and a private en-suite bathroom.

Location

The property is located within one of the UK’s most prominent student markets, with a total student population of approximately 70,000 across several higher education institutions. One Islington Plaza occupies a central position on Devon Street, within close proximity to both the city centre and key university campuses. The University of Liverpool is approximately a 12-minute walk, Liverpool John Moores University a 13-minute walk, and Liverpool Hope University’s Creative Campus is just a 1-minute walk away. Liverpool benefits from a diverse and growing economy, with key strengths in healthcare, education and professional services. The city continues to attract a strong cohort of both domestic and international students, with overseas students accounting for approximately 25% of the total student population.

Auction Information

Tenure

Leasehold. The legal pack is the definitive source for lease length, title, covenants, service charges, ground rent and special conditions.

Council Tax

Band D.

Investment Analysis

Market Comparables

Use recent Land Registry sold evidence and genuinely comparable current/let rental evidence for the same micro-location, accommodation, tenure and condition. Venmore’s stated rents or rental opinions are retained as auctioneer evidence where supplied; HB screening figures are not a formal valuation.

Proposed Works

HB desktop allowance: £16,000. Scope should be confirmed from inspection, photographs, survey and contractor pricing. Prioritise structure, roof/damp, services, heating/electrics, windows, kitchens/bathrooms, decoration and external works only where relevant to this specific property.

Rental Value

No achieved/current rent has been assumed where the auction particulars do not provide one. Obtain current comparable letting evidence before relying on a BTL appraisal.

Low / Base / High Investment Scenario

BTL Analysis

Potential BTL suitability depends on a verified market rent, tenure costs, licensing and condition. No unsupported achieved rent has been inserted.

BRRR Analysis

At the HB base value screen of £410,000, a 75% refinance is approximately £307,500 before lender criteria. Compare this with the full project cost, not guide price alone.

Flip Analysis

HB base screen £410,000 less guide £320,000 and works £16,000 gives a gross pre-cost spread of £74,000 before buyer fee, SDLT, legal, finance, holding, contingency, selling costs and tax.

Specialist HMO Analysis

Confirm planning use, HMO licence requirements, room sizes, amenity standards, fire precautions, Article 4 implications, occupancy limits and evidence of per-room rents. Do not assume existing configuration is lawfully licensable.

Maximum Bid Indicator

Maximum bid should be calculated from verified end value/income less works, the lot-specific Venmore buyer fee, legal/professional fees, finance, holding, contingency, selling costs and required profit/return. SDLT is buyer-specific and is not included in this screening.

Strategy Recommendation

Select between income hold, BRRR or refurbishment/resale only after survey, legal-pack and comparable checks confirm the assumptions.

Strategy Rating

BTL: ★★★★☆ | BRRR: ★★★☆☆ | Flip: ★★★☆☆

Key Risks

Lease length, ground rent, service charge and lender acceptability, listed-building constraints, legal-pack special conditions, condition/survey, finance and valuation risk.

Analysis Confidence

Medium for facts reproduced from Venmore’s particulars; low-to-medium for HB desktop works/value screens until inspection, legal-pack review, direct sold/rental comparables and contractor/QS pricing are completed.